Starbucks will close more than 100 cafes across North America and the UK and cut 900 non-retail jobs as part of a US$1 billion (NZ$1.7b) restructuring plan to revive its struggling business.
Chief executive Brian Niccol said underperforming outlets that fail to provide a “warm and welcoming space” or meet financial targets will shut, while investment will focus on redesigning existing stores, boosting staff hours, and improving customer service. The world’s largest coffee chain has faced slowing sales, activist pressure, boycotts over alleged links to Israel, and union strikes in the US, while UK operations posted a £36.2m loss.
Despite plans to open 80 new UK stores, closures and layoffs highlight the challenges facing Niccol, whose high pay package and use of a private jet have drawn criticism as Starbucks shares fall 12% since his appointment last year.
Image credit: Usama Akram
Ailing Empire
Microcosm of the macrocosm
A sinking ship
I had what they call coffee once.
I was barely drinkable, but the rest of the plastic experience was, well, plastic.
Good riddance. I can proudly say that I have never been to a Starbucks store.
And they can take their hideous plastic rubbish and shove it where the sun don’t shine.
Their hot chocolate is dismal.
Daily habit to occasional indulgence
Priced off the market